EMERGENCY ORDINANCE NO. 132/2020

 In Fiscal news

EMERGENCY ORDINANCE NO. 132/2020 on support measures for employees and employers in the context of the epidemiological situation caused by the spread of the SARS-CoV-2 coronavirus, as well as for stimulating employment growth

 

In the Official Gazette no. 720 of 10.08.2020 was published the GEO 132/2020 on support measures for employees and employers in the context of the epidemiological situation caused by the spread of SARS-CoV-2 coronavirus, as well as to stimulate employment growth, which entered into force starting with 10.08.2020.

The ordinance provides for the following measures:

1. The indemnity for reducing the working time of the employees by maximum 50%

In the case of temporary reduction of the activity determined by the establishment of the state of emergency / alert / siege, under the law, employers have the possibility to reduce the working time of employees by no more than 50% of the work duration provided in the individual employment contract, by informing and consulting the union, the employees’ representatives or the employees, as the case may be, prior to the communication of the decision to the employee, for a period of at least 5 consecutive working days and the employer has the obligation to establish the work schedule for the entire month. The reduction of working time also applies in the case of shift work as well as in the case of unequal work schedule.

During the period of reduction of the working hours, employees affected by this measure will receive an indemnity of 75% of the difference between the gross basic salary provided for in the individual employment contract and the gross basic salary corresponding to the hours actually worked as a result of the reduction of the working hours. This indemnity comes in addition to the salary rights calculated for the actual time worked.

This indemnity will be bear initially by the employer and it is paid to the employee on the date of the payment of the salary for the respective month. The employer will then have the indemnity reimbursed from the unemployment insurance budget, after the employer will comply with the declaring and paying obligations for the income from salaries and assimilated to the salaries from the period for which the application was submitted. The settlement procedure of the amounts, as well as the period of application of this measure, will be established by a Government Decision.

The indemnity is considered income from salary and is subject to taxation and payment of social contributions, in accordance with the law.

During the period in which the reduction in the working schedule applies, the employer may not hire staff to carry out activities identical or similar to those of the employees who have been placed on a reduced work schedule, as well as the subcontracting of the activities carried out by the employees whose working time has been reduced.

2. Indemnities for professionals

In case of temporary reduction of the activity determined by the establishment of the state of emergency / alert / siege, the professionals, as they are regulated by art. 3 para. (2) of Law no. 287/2009 on the Civil Code, republished, with subsequent amendments, as well as the persons who have concluded individual labor agreements based on Law no. 1/2005 on the organization and functioning of the cooperation, republished, with subsequent amendments, benefit upon request, based on the declaration on its own responsibility, of a monthly allowance of 41.5% from the average gross earning provided by the Law on the state social insurance budget on year 2020 no. 6/2020, with subsequent amendments and completions.

The payment of the allowance is made from the state budget allocated to the Ministry of Labor and Social Protection, through the National Agency for Payments and Social Inspection and the agencies for payments and social inspection of the counties, respectively of the municipality of Bucharest.

For the indemnity are due the income tax, the social insurance contribution and the social health insurance contribution, in the quotas provided in the Law no. 227/2015, with subsequent amendments and completions, or according to specific regulations, in the case of insured professionals in their own social insurance systems.

The fiscal obligations are declared through the unique declaration regarding the income tax and the social contributions due by the individuals and they are paid by the beneficiaries, individuals, within the term provided by law, except for the persons who have concluded individual labor agreements based on Law no. 1/2005, republished, with subsequent amendments, whose tax obligations are declared, withheld and paid by the cooperative society, through the declaration on the obligations to pay social contributions, income tax and nominal records of insured persons.

The actual duration of application of this measure, the categories of professionals, as well as the procedure for payment of the indemnity are established by the Government decision. As an exception, in 2020, will benefit from this indemnity professionals and persons who have concluded individual labor agreements based on Law no. 1/2005, republished, with the subsequent modifications, which benefited from the indemnity provided in art. XV alin. (1) of the Government Emergency Ordinance no. 30/2020 for amending and supplementing some normative acts, as well as for establishing measures in the field of social protection in the context of the epidemiological situation determined by the spread of SARS-CoV-2 coronavirus, approved with amendments and completions by Law no. 59/2020, with subsequent completions.

3. Indemnity for day laborers

For persons who carry out unskilled activities on an occasional basis, according to the provisions of Law no. 52/2011 on the exercise of occasional activities carried out by daily laborers, republished, with subsequent amendments and completions, hereinafter referred to as daily laborers, which carry out their activity in one of the areas provided in art. 13 of Law no. 52/2011, republished, with subsequent amendments and completions, affected by the interruption or restriction of activity due to the effects of SARS-CoV-2 coronavirus, for a period of three months, at the choice of the beneficiary of the works, but not later than December 31, 2020 , an amount representing 35% of the remuneration due for the working day is granted from the state budget.

The amount is granted by the beneficiary of works, from his own budget, at the time of payment of the daily work, and subsequently is fully settled, at his request, for the persons for whom it was paid, from the state budget allocated to the Ministry of Labor and Social Protection, through the National Agency for Payments and Social Inspection and the agencies for payments and social inspection of counties, respectively of the municipality of Bucharest. The settlement shall be made no later than 10 days from the date of submission of the application, based on a procedure approved by Government decision.

The amount mentioned above represents income of a salary nature for which income tax and social insurance contribution are due.

4. Settlement of a part of the salary for employees with individual employment contracts of up to 3 months

Until 31 December 2020, but no more than a period of 3 months, at the choice of the employer, for employees with whom individual employment contracts are concluded for a fixed period of up to 3 months, the settlement of a part of the salary granted, incurred from the unemployment insurance budget, representing 41.5% of the salary for the days worked in these jobs, for a working period of 8 hours / day, but not more than 41.5% of the average gross earnings provided by the Law on the state social insurance budget for 2020 no. 6/2020, with subsequent amendments and completions, related to the worked period.

The employer has the obligation to pay in full the value of the work performed based on the individual employment contract for a fixed period, the amount representing the percentage of 41.5% being subsequently settled by the National Agency for Employment, hereinafter referred to as ANOFM.

The settlement of the amount shall be made at the request of the employers on the basis of the declaration on their own responsibility showing the fulfillment of the conditions accompanied by the list of persons for whom the settlement of the amount is requested, asumed by the legal representative of the employer, after the fulfillment by them of the declaratory and payment obligations related to the incomes from salaries and assimilated to the salaries from the period for which the request is made.

The settlement of the amounts from the unemployment insurance budget is made within maximum 10 days from the date of submitting the application, based on a procedure that is approved by a decision of the Government.

5. Financial support for carrying out teleworking activity

For carrying out the activity in telework regime, in accordance with the provisions of Law no. 81/2018 on the regulation of telework activity, it is granted, once, to employers for each employee who performs telework a financial support in the amount of 2,500 lei in order to purchase packages of technological goods and services necessary for the activity of telework. The amount is granted, based on the order in which the submission of applications was made, until December 31 2020, from the unemployment insurance budget, through ANOFM, in the limit of the funds allocated for this purpose, to the employers, for the employees who worked in the telework regime during the state of emergency at least 15 working days.

The method of granting and the categories of goods that can be purchased are established by order of the Minister of Labor and Social Protection, which is published in the Official Gazette of Romania, Part I, within 10 days from the publication of this emergency ordinance.

Within 30 days from the granting of the amount, the employer has the obligation to send to ANOFM the supporting documents regarding the acquisition of the categories of goods established by the order of the Minister of Labor and Social Protection.

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